NewJersey Resources Corporation (NJR)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 2,587,840 | 2,362,840 | 2,102,840 | 2,102,840 |
| Total stockholders’ equity | US$ in thousands | 2,200,440 | 1,990,740 | 1,817,210 | 1,630,860 | 1,643,900 |
| Debt-to-capital ratio | 0.00 | 0.57 | 0.57 | 0.56 | 0.56 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,200,440K)
= 0.00
The debt-to-capital ratio of NewJersey Resources Corporation has shown stability over the past five years. As of September 30, 2024, the company reported a debt-to-capital ratio of 0.00, indicating that the company had zero debt in relation to its capital. This is a significant improvement from the previous year, where the ratio was 0.57.
The decrease in the debt-to-capital ratio suggests that the company has either reduced its debt levels or increased its capital base, or a combination of both. A lower debt-to-capital ratio is generally considered favorable as it indicates lower financial leverage and lower risk associated with debt.
Overall, the trend of decreasing debt-to-capital ratio over the past five years reflects positively on NewJersey Resources Corporation's financial health and prudent management of its capital structure.
Peer comparison
Sep 30, 2024